Crypto is a burgeoning space marred by negative connotations, such as scams and crypto winter, which lead to fear, uncertainty, and doubt. Whereas some people have made a fortune, others have lost money in the quest for wealth. Consequently, and without fear of contradiction, quick wealth might only be acquired through a jackpot, a lottery, or inheritance.
Crypto adoption is rapidly growing in Sub-Saharan Africa, and individuals, corporate institutions, and regulatory authorities should find safe ways to interact with digital assets. Though some countries have banned crypto, others are embracing it but are seeking guidelines to protect consumers. So, what is the status of crypto adoption in Africa, and what needs to be done to restore confidence?
Beginning from the basics
Cryptocurrencies are digital assets that are hard to counterfeit owing to the technology (cryptography) that secures them. On the other hand, blockchain is the technology that supports and allows cryptocurrencies to exist. Cryptocurrencies use their blockchain whereas crypto tokens ride on the blockchains of crypto coins.
The current state of affairs
‘Red light, green light’ are popular words that movie lovers can relate to from the TV series, ‘Squid Game,’ whose Season 2 premiered on December 26, 2024. Most ‘players’ in season two have lost money through crypto scams. In the world of crypto, the red light would indicate a time to buy more or hold (retrofitted as ‘hold on to dear life’ that urges those with digital assets to hold onto them and not sell when the price is low), and the green light would mean a time to dispose of your digital assets at a profit as prices go up.
Crypto space can offer job opportunities to African youths as non-fungible token creators, and developers by providing blockchain scaling solutions, and trading.
2025 looks promising for crypto, although the crypto bull run that started in January 2023, climaxing in an all-time high price of $109,350.72 on Monday, January 20, 2025, the day Donald Trump was inaugurated as the US president, enters the final stage. Crypto enthusiasts and traders should exercise caution as the excitement that the 2024 US election brought, following Trump’s win, wanes. President Trump has been a crypto proponent before and after the elections.
Recent calls by the International Monetary Fund for consumer protection, enhanced financial literacy, and regulatory clarity in Kenya’s growing crypto market present a catch-22 situation where there is a need to protect consumers from crypto risks and also give room for innovations and the advantages that crypto presents such as financial inclusion of the marginalized. Kenya made it to the top 30, and was ranked position 28 globally according to Chainalysis 2024 Geography of Cryptocurrency Report, which highlights the global crypto adoption index. The ranking points to fast adoption of crypto in Africa. The IMF has previously urged better regulation across Africa.
Introducing a bill to tax crypto in Kenya, flagging some peer-to-peer users in Nigeria, adopting Bitcoin as legal tender in the Central African Republic, and Tanzania’s cautionary approach to the adoption of a Central Bank Digital Currency affirms a mixed approach and stands by various countries in Africa. Crypto conversations will be here for a long time.
Demystifying the crypto scams statistics
“If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” According to Chainalysis, over $5.9 billion (equivalent to the Cayman Islands Gross Domestic Product in 2021) was lost through crypto scams in 2022, with all the top 10 being investment scams. 2025 remains a year to watch between crypto players, regulators and the justice system. The US Department of Justice just gave the green light to the liquidation of seized Bitcoin worth $6.5 Billion.
How to avoid being part of statistics
Information is power. There should be no shortcuts to mastering the field of crypto and blockchain. You can understand the ins and outs of the cryptocurrency space through training. Crypto exchanges like Binance offer free courses, while the Coursera platform also offers short courses about crypto and blockchain. Boot camps and conferences also offer good information exchange and networking opportunities for crypto enthusiasts.
You may have found tempting offers in your social media direct messages by ‘expert traders’ to entrust them with some crypto so that they can grow your crypto assets. Some may offer mind-boggling returns such as tenfold! Sounds familiar? These self-proclaimed ‘expert traders’ are out to exploit naïve and gullible individuals. Always do your due diligence. Should you be interested, learn the trade and trade crypto for yourself to avoid being scammed.
The case for crypto in Africa
Traditional financial systems may limit transaction amounts and require multi-level approvals, causing unnecessary delays to clients. On the other hand, crypto transactions are convenient because they support large volumes and can be executed within a short period without involving intermediaries, hence being a trade enabler.
Crypto space can offer job opportunities to African youths as non-fungible token creators, and developers by providing blockchain scaling solutions, and trading. Those who have mastered the burgeoning space can choose to train interested individuals at a fee. As crypto companies set foot in Africa, more Africans will be employed by these firms.
Though not an advocate of crypto, the government of Kenya has noticed the potential in the space and proposed implementing a 3 percent tax on crypto transfers in the contentious 2024 Finance Bill. However, understanding how the industry works should come first since not all transfers are profits. Once better policies are in place, the crypto industry can be a good source of revenue for the government.
Inflation remains a problem for most Sub-Saharan nations. To hedge their savings against inflation, individuals can choose to diversify their portfolios and save some of their assets in stable cryptocurrencies.
When all is said and done
Cryptocurrencies are here to stay, but players should enhance awareness and restore sanity in the industry. The good, the bad, and the ugly of cryptocurrencies should be considered when adopting a policy stand about cryptocurrencies. Creating awareness should be the starting point, and all stakeholders should be brought to the decision-making table. The conversation about cryptocurrencies and blockchain cannot be wished away. Let’s have a candid conversation, shall we?
Jamlick Kogi is an alumnus of the African Liberty Writing Fellowship and a visionary with TCM Africa. He is a crypto enthusiast, corporate trainer, and author of three books.
Photo by Kancha Nara via Unsplash.